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Gartner Says India Remains No.1 Outsourcing Location

India Leads Offshore Outsourcing Segment

When it comes to offshore outsourcing, India stays on top of the list, according to the recent offshore services report from IT consultancy firm Gartner.

Based on the report, India gets high scores in all 10 criteria namely: language, support from the government, manpower availability, infrastructure, educational system, cost, environment (political and economic), cultural compatibility, global and legal maturity, as well as IT security.

India remains the top outsourcing destination, but Gartner said the Philippines, Vietnam, and Indonesia pose as tough competitors in terms of service competitiveness and cost efficiency. "Attractive cost structures in the Philippines, Vietnam, and Indonesia create tough competition for India, while China remains the most prominent challenger in terms of scale." The Philippines, on the other hand, remains attractive to foreign firms due to its young manpower pool, good English communication skills, and cultural affinity with Western companies.